Coming soon
The Carbon War Room team includes high-profile entrepreneurs,
visionaries, change-makers, business leaders, and subject experts that
understand the urgent need to address climate change and the potential
for wealth generation in the post-carbon economy. We are a team
committed to developing and supporting the business ideas that do
both.
JOIN US
JOIN US
SITUATION
The Smart Grid is a key enabler of CO2e emissions reductions in the electric power sector and the vehicle sector. Smart Grid infrastructure supports increased integration of solar, wind, and plug-in electric hybrid vehicles (PHEVs) into the electricity grid through better supply and demand management.
The Smart Grid is a key enabler of CO2e emissions reductions in the electric power sector and the vehicle sector. Smart Grid infrastructure supports increased integration of solar, wind, and plug-in electric hybrid vehicles (PHEVs) into the electricity grid through better supply and demand management.
More efficient electricity management is also facilitated by the Smart Grid. Reductions in CO2e from a Smart Grid in the U.S. have been estimated by EPRI (2008) to be between 60 and 211 million tons, or between 1% and 2% of total U.S. emissions. If similar savings are achievable globally by 2020, CO2e reductions from the Smart Grid could total more than 1 billion tons annually. Reducing emissions in the electricity and transport sectors by is critical to avoiding dangerous climate change.
The current grid architecture impedes the integration of renewable energy and induces large transmission and distribution (T&D) losses, thereby contributing to increasing CO2e emissions. Reform of the grid would have a number of ancillary benefits for consumers, including more control over usage and generation source. Increasing reliance on renewable energy generation would reduce pollution damage to the environmental and human health – including NOx and SOx emissions causing lung problems, acid rain, and smog.
The limitations of the current electricity grid were identified in a 2008 study by the Electric Power Research Institute (EPRI) in the context of development of the Smart Grid:
- Continuous commissioning of buildings [to identify energy inefficient systems]
- Reduced transmission and distribution (T&D) line losses
- Direct feedback to customers
- More effective and reliable demand response and load control
- Enhanced measurement & verification (M&V) capabilities
- Greater integration of renewable energy sources
- Greater deployment of plug-in electric hybrid vehicles (PHEVs).
OBJECTIVE
Continued investment and complete overhaul of electricity grids globally are needed. The estimated investment for a U.S. Smart Grid is in the neighborhood of $200 billion over 10 years, as reported by the Center for American Progress (CAP) in their 2009 study, with the potential to reduce annual CO2e emissions reductions of 1% to 2% by 2020.
Continued investment and complete overhaul of electricity grids globally are needed. The estimated investment for a U.S. Smart Grid is in the neighborhood of $200 billion over 10 years, as reported by the Center for American Progress (CAP) in their 2009 study, with the potential to reduce annual CO2e emissions reductions of 1% to 2% by 2020.
As a national investment, this is lower than the bill for the national highway system, footed by the federal government over a 30-year period and estimated to cost around $450 billion in today’s dollars.
The U.S. government has committed $4.5 billion in stimulus spending to the Smart Grid (and an additional $6.5 billion to transmission), compared to China which has committed $170 billion in stimulus funds to grid updates.
Market-based Approaches
The solutions that can unlock private investment around the Smart Grid and potential CO2e emissions reductions of 1% to 2% annually include the following, as outlined by CAP (2009):
- Cost allocation strategies, so that local utilities don’t have to foot the entire bill for upgrades that have regional or national benefits
- Financing for large upfront costs that deter utilities
- Complete cost-benefit analysis, given limited experience with new grids
- Regulatory change that supports active use of Smart Grid, e.g. rate review to allow time of use pricing.
SMART GRID ENABLES RENEWABLES
Smart Grid infrastructure supports the integration of solar, wind, and plug-in electric hybrid vehicles into the electricity grid through better supply and demand management. These renewable...
Read more >
NEW TRANSMISSION SUPPORTS RENEWABLES
Larger, stronger, and better connected electricity transmission networks allow grids to make use of more generation from renewables. Insufficient transmission capacity prevents the adoption of...
Read more >
SMART GRID REDUCES EMISSIONS
More efficient electricity management facilitated by the Smart Grid leads to reductions in CO2e. Estimates by EPRI (2008) for the U.S. show emissions reductions to be between 60 and 211...
Read more >INTELLIGENCE
REPORTS
European Commission, 2006
EPRI, 2008
Greentech Media, 2009
Center for American Progress, 2009
PUBLICATIONS
H.B. Higgins
MIT Press, 2009
MIT Press, 2009
C.W. Gellings
2009
2009
Berkeley Electronic Press
